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In franchising terms, what is a franchise model? Why is it important to franchising?
The franchise model is more than a ‘part’ of the franchise system, it IS the franchise system.
This may come as a surprise to some, but of all the calls/emails that I receive from people interested in franchising a business, at least 15-20% come from people that want to franchise an ‘idea’. And of course, as a franchise consultant, I tell them all the same thing. An ‘idea’ can be franchised, if one chooses to waste all the money required to build a franchise company around the idea, but ‘wasted’ is the operative word, because it is probably a million to one bet that the concept will ever fly.
The franchise model is not only proof to the franchisor that a system actually exists to teach others, it is obviously required to demonstrate to prospective franchisees that there is something tangible in which to invest.
When franchising a business, the model and the system it represents must not only be working for the founder or current management, it must be documented with regard to each aspect of establishing a new location, as well as the training required for new (competent) people to operate it.